Money In Trash

It’s not just the Sopranos who make illegal money in waste management. Just like an episode of Seinfeld, where Kramer and Newman were going to make money by hauling cans and bottles from New York to Michigan, where the deposit was higher, some real life entrepreneurs have been doing the exact same thing. They were buying aluminum cans and bottles in Mexico and other states with lower than the PRC deposit rates. They were paying $950 per ton for aluminum cans and turning them in to recycling centers in the PRC for $2,490 per ton. Plastic bottles netted even higher profits; selling for $90 a ton out of state and bringing in $910 in California. They have been arrested for their creativity and are looking at some serious criminal charges.

The fact that this kind of thing would happen shouldn’t surprise anyone. Money is like a liquid, finding its own level. Any time there is a disparity in taxes or prices between jurisdictions, people will try to find a way to exploit it. It’s exactly what is happening with the differences in taxes on cigarettes in the various states. On Wall Street, this kind of financial scenario is called arbitrage and its practitioners usually receive huge compensation.

KMK

Tax Cuts For The Rich

I happened to hear Rush’s show today, when a woman called in who claimed to work in a tax accountant’s office. Her explicit envy of the rich and espousal of Democrat talking points made me wonder if she is Dick Gephardt’s accountant. She even said that rich people are lucky, echoing Little Dick’s oft-used description of the wealthy as “winners of life’s lottery.”

Her call reinforces how important it is to select a tax advisor who is in synch with your ideas about taxes. It never ceases to amaze me how many other tax practitioners actually think their clients should be paying more in taxes, as this woman admitted on national radio. Somehow, paying this woman’s firm to prepare a tax return giving more money to the IRS doesn’t seem quite right.

Rush has some good details from IRS on how the rich in fact pay much more than their fair share in taxes. By definition, any reduction in taxes would have to benefit those people who actually pay taxes in the first place.

KMK

Charity Fundraisers

It looks like more charities are raising funds by producing calendars with different groups of people who are willing to pose in various states of dress. Even some Libertarian candidates in North Carolina have gotten into the act with their Ladies of Liberty calendar. It sure beats bake sales and raffles.

KMK

Nabbing Scammers

It’s surprising to see that the authorities are actually trying to catch the perpetrators of the long running Nigerian money scam that seems to lure in a steady stream of gullible idiots. Here’s another quick recap of how pervasive and profitable these scams are.

KMK

Unreasonable Expectations

Over the past few decades, people have come to expect far too many things to be taken care of for them by the government. This Bill of No Rights is a good summary of how absurd those expectations are.

KMK

Making Money Off An Addictive Drug

With all of the demonizing of the tobacco companies, it’s interesting to see who actually makes the most money from cigarettes; governments with all of their increasing taxes. Here is a similar take on it by an actual tobacco company executive.

I wonder if the same people who think it is unpatriotic to do the things I advise to legally reduce or eliminate one’s tax burden would similarly condemn anyone who quits smoking and thus deprives government of revenue.

KMK